Correlation Between Walker Dunlop and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mainstay Epoch at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walker Dunlop and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Mainstay Epoch Global, you can compare the effects of market volatilities on Walker Dunlop and Mainstay Epoch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Walker Dunlop with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mainstay Epoch.
Diversification Opportunities for Walker Dunlop and Mainstay Epoch
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Mainstay is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global and Walker Dunlop is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Walker Dunlop are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mainstay Epoch
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Mainstay Epoch. In addition to that, Walker Dunlop is 1.42 times more volatile than Mainstay Epoch Global. It trades about -0.21 of its total potential returns per unit of risk. Mainstay Epoch Global is currently generating about -0.1 per unit of volatility. If you would invest 2,251 in Mainstay Epoch Global on January 12, 2025 and sell it today you would lose (112.00) from holding Mainstay Epoch Global or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Mainstay Epoch Global
Performance |
| Timeline |
| Walker Dunlop |
| Mainstay Epoch Global |
Walker Dunlop and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mainstay Epoch
The main advantage of trading using opposite Walker Dunlop and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mainstay Epoch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
| Mainstay Epoch vs. Morningstar Global Income | Mainstay Epoch vs. Qs Global Equity | Mainstay Epoch vs. Legg Mason Global | Mainstay Epoch vs. Summit Global Investments |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |